Key Takeaways
- Q1 adjusted operating profit at Airbus plummeted 52% year-over-year to €300M from €624M
- Quarterly revenue declined 7% to €12.65B, though surpassing analyst projections
- Aircraft deliveries totaled just 114 units in Q1, down from 136 last year and trailing Boeing’s 143
- Ongoing engine supply constraints from Pratt & Whitney continue hampering production
- Annual delivery forecast remains at 870 aircraft despite quarterly struggles
The European aerospace manufacturer experienced a challenging opening quarter, with adjusted operating profit collapsing 52% to €300 million compared to €624 million during the first quarter of 2025. Quarterly revenue registered at €12.65 billion, representing a 7% year-over-year contraction.
While profitability disappointed, the revenue figure surpassed Wall Street projections. Market analysts had anticipated €12.39 billion in revenue and €348 million in adjusted operating profit, based on consensus estimates compiled by the company. Earnings per share reached 74 euro cents, significantly outperforming the forecasted 44 euro cents.
Airbus SE, AIR.DE
The primary concern centers on delivery performance. The aircraft manufacturer completed handovers of only 114 commercial planes during Q1, marking a 16% decrease from 136 units delivered in the comparable 2025 period. This figure also trailed competitor Boeing, which managed 143 aircraft deliveries during the identical timeframe — a particularly noteworthy contrast considering Boeing’s well-documented operational challenges.
The root cause remains consistent: inadequate engine supply. U.S.-based supplier Pratt & Whitney has persistently delivered engines behind schedule, effectively capping Airbus‘s production capacity. The dispute has escalated to legal proceedings — Reuters disclosed in March that Airbus is actively pursuing compensation claims against the supplier for delivery delays.
Production Output Continues to Challenge Growth
The aerospace company maintained its annual guidance unchanged, continuing to target 870 commercial aircraft deliveries throughout 2026. Management also confirmed its production rate objective of 70 to 75 A320-family aircraft monthly by the conclusion of 2027 — a target already revised downward in February from the initial ambition of 75 units per month by early that year.
Reaching the full-year delivery target from the current quarterly pace of 114 units will necessitate substantial production acceleration in coming quarters. Jefferies analysts articulated the challenge directly before earnings release: “The pace at which Airbus can translate this into higher deliveries has become the key swing factor for earnings and valuation.”
The commercial aircraft division experienced an 11% sales decline during the period. The helicopters segment remained unchanged year-over-year, while defence and space operations expanded 7%. The defence unit emerged as a notable positive, recording adjusted core profit of €130 million versus analyst expectations of €111 million.
Market Confidence Moderating
Analyst outlook surrounding Airbus has tempered since early 2026, partially driven by Boeing’s emerging recovery signals. Boeing disclosed a smaller-than-anticipated quarterly loss in Q1, demonstrating operational improvements throughout its commercial aircraft operations as the company progresses through an extended restructuring following its quality control and manufacturing crisis.
Boeing CEO Kelly Ortberg indicated demand remains resilient, with minimal effects from Middle Eastern trade tensions. UBS observed earlier this month that replacement demand maintains sufficient strength to support Airbus even amid sustained elevated fuel costs.
Currency headwinds also impacted quarterly performance. Since commercial aviation contracts are predominantly dollar-denominated, exchange rate fluctuations can adversely affect euro-denominated financial results.
Order momentum remains robust for Airbus, supported by a substantial backlog. However, investors are currently prioritizing delivery execution above all else — and the first quarter demonstrated that the disconnect between order volume and production output persists.
The defence and space division’s adjusted core profit of €130 million, exceeding the €111 million projection, represented the quarter’s most significant positive surprise.
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Source: https://blockonomi.com/airbus-air-stock-tumbles-as-q1-profit-plunges-52-amid-delivery-challenges/